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International Political Economy, Global Financial Orders and the 2008 Financial Crisis

Published online by Cambridge University Press:  19 March 2013

Daniel W. Drezner  and
Kathleen R. McNamara
Daniel W. Drezner
Affiliation:
Fletcher School of Law and Diplomacy at Tufts University. E-mail: [email protected]
Kathleen R. McNamara
Affiliation:
Georgetown University. E-mail: [email protected]
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Abstract

The 2008 financial crisis triggered the most severe global economic downturn since the Great Depression. The crisis has provoked soul-searching among economists, yet international political economy (IPE) scholars have been relatively sanguine. We argue that IPE has strayed too far away from studying the geopolitical and systemic causes and consequences of the global economy. IPE must explain the generation and transformation of global financial orders. Both the distribution of political power and the content of economic ideas will shape any emergent global financial order. A Kuhnian life-cycle framework of global financial orders permits a systemic approach to global finance that integrates the study of power and social logics into our understanding of markets.

Type
Reflections
Information
Perspectives on Politics , Volume 11 , Issue 1 , March 2013 , pp. 155 - 166
Copyright
Copyright © American Political Science Association 2013 

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